$NRG · NRG ENERGY, INC.
NRG Energy announced a definitive agreement to sell six natural-gas generation assets (4.9 GW across NYISO, ISO-NE, and ERCOT) to an LS Power affiliate for $4 billion in cash, subject to working capital and closing adjustments. The price implies an 8.0x EV/Adj. EBITDA multiple on 2027 estimates. Proceeds will fund a $3 billion share repurchase plan across 2026-2027 (including an incremental $1 billion expected to begin before end of Q4 2026) plus $2 billion of additional debt reduction upon closing, bringing total planned 2027 debt reduction to $3 billion.
- Sale price is $4 billion cash, implying 8.0x EV/Adj. EBITDA on 2027 estimates.
- Six assets total 4.9 GW across NYISO, ISO-NE, and ERCOT markets.
- NRG plans $3 billion of share repurchases across 2026 and 2027.
- An incremental $1 billion buyback is expected to begin before end of Q4 2026.
- Upon closing, NRG plans $2 billion of additional debt reduction, totaling $3 billion in 2027.
Shares rose 9.61% in the regular session to $88.29, with extended-hours trading at $94.16 (+6.65% vs close), signaling a strongly positive reception to the asset monetization and buyback plan.
A $4 billion asset sale at an attractive multiple funds a major shareholder-return program, directly reshaping NRG's balance sheet and capital allocation.
The sale monetizes merchant gas generation at an 8.0x multiple while NRG retains a 20 GW footprint concentrated in PJM and ERCOT, aligning with the sector's shift toward contracted, higher-return capacity.
Closing is subject to HSR, FERC, and NYSPSC approvals and customary conditions; failure or delay could alter timing, proceeds, and the capital allocation plan. Forward-looking statements note the inability to reconcile the implied multiple to GAAP without unreasonable effort.